Dell Technologies’ (DELL) remarks around artificial intelligence servers were encouraging and showed the company’s AI story is in early days and “gaining momentum,” Morgan Stanley said Friday. The computer maker late Thursday delivered better-than-expected fiscal Q4 results. The management’s AI server commentary “stole the show,” with backlog almost doubling and orders increasing about 40% sequentially, Morgan Stanley said in a note. The brokerage raised its price target on the Dell stock to $128 from $100. “While Dell has had a phenomenal run over the last 12 months, we believe there is still further outperformance to capture, and a hard catalyst to drive this re-rating, allowing us to reinstate Dell as our top pick,” Morgan Stanley said. The company’s shares were up nearly 26% in recent trading.

The following is a summary of the Dell Technologies Inc. (DELL) Q4 2024 Earnings Call Transcript: Financial Performance: Dell reported FY24 revenue of $88.4 billion, operating income of $7.7 billion and EPS of $7.13. Q4 returned revenue of $22.3 billion, an operating income of $2.1 billion, and diluted EPS of $2.20. Dell generated $8.7 billion cash flow from operations with improved cash conversion cycle to negative 47 days. They delivered improved operating margin rate by focusing on higher gross margins and managing operating expenses effectively. Dell Financial Services origins were $8.4 billion for the year and $2.5 billion in Q4, with DFS managed assets concluding the year at $14.4 billion. Dell announced a 20% increase in annual dividend to $1.78 per share. Business Progress: AI-optimized server portfolio, especially the flagship PowerEdge XE9680 showed positive momentum in Q4 with nearly 40% sequential growth in orders. Dell witnessing three consecutive quarters of

Bernstein analyst Toni Sacconaghi maintains Dell Technologies with a Outperform and raises the price target from $90 to $120.

By Callum Keown Dell Technologies stock was set to open at a new record high Friday, but Thursday’s upbeat earnings could also give Nvidia and Advanced Micro Devices, who power its servers, an extra boost. Dell stock soared 24% to $117 ahead of the open, while Nvidia edged 1% higher and AMD rose 3%. “While the Nvidia ‘sizzle’ from the Dell call was so obvious, you may not realize how good this Dell quarter was for AMD,” Melius Research analyst Ben Reitzes said in a note Friday. “Traditional server CPUs picking up helps support AMD margins and lends further upside to its data center segment,” he added. Reitzes said that Intel may also benefit from Dell’s commentary around servers, but that upside from PC sales for the company, and AMD, won’t come along for another few quarters. Melius analysts have a Buy rating on Dell with a price target of